Thursday January 15, 2009
Navivest

Regular readers of the blog know that since Monday, we have been calling for a rebound in the stock market some time this week. Monday went by, another down day, Tuesday, another down day, Wednesday, same thing and that’s when we said hold up.

We looked at the Dow going back a year, and the longest losing streak we’ve had, is 8 days starting October 1st. But for those that remember their recent financial history, those were the crazy days and it was just two weeks earlier that Merrill Lynch sold itself to Bank of America, on the 14th of September and Lehman filed for bankruptcy the next morning. So times were different then, not by much, but different.

We posted the results of that quick study on the blog this morning and said that we were hopeful for the rebound today. We are getting it.

After hitting an intra-day low of 7,995.13 the Dow Jones Industrial Average, has turned around and at 2:55, we are up 38 points, to 8,238.21. Of course if you are a technician and thought we would find support at 8,000 and thus went long at those levels, you are sitting very pretty already.

Amazon (AMZN), on which we just rushed out an options trade to subscribers of our Options Capitalist trading advisory service, is already up $3.15. We think the stock could extend those gains tomorrow.

We recommended some infrastructure stocks throughout this week, because we feel they will benefit from the incoming Obama administration. To get the list, click here.

We do feel that we should get a decent up day tomorrow and if not, Monday, when the Obama honeymoon period starts, so take long positions in those names if you have not done so already.

Tags: Stock Market Rebound  Infrastructure Stocks